Points of Order
Debate between John McDonnell and Lindsay Hoyle(7 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
On a point of order, Mr Speaker. The House rises tomorrow for 10 days, I believe. Regrettably and sadly, it may be likely that a ground invasion of Gaza will commence during that period. This not only has consequences for the Palestinians and the Israelis, but could create turmoil and destabilise the whole middle east. I appreciate that it is the Government who determine whether or not Parliament is recalled but, in your conversations with the Government, will you advise them that the House should be recalled to debate such a serious issue?
Mr Speaker
You are absolutely right that it would not be for me under the normal rules, although I recognise the importance of a major escalation and what could happen in the middle east. You are correct that it would be for the Government—not for me, unfortunately—to recall the House. I will work through the usual channels to try to ensure that, quite rightly, we look to see what can be done in what would be special circumstances, because obviously the House will have prorogued. I do not lose sight of what you have said, and I take it on board. I will work with others behind the scenes to see how we would manage such a situation.
Points of Order
Debate between John McDonnell and Lindsay Hoyle
John McDonnell (Hayes and Harlington) (Lab)
On a point of order, Mr Speaker. I apologise to Members for delaying the debate, but this is the first opportunity I have had to do this, and it has to be done promptly after the event itself.
Yesterday, I was on a Statutory Instrument Committee dealing with a Department for Work and Pensions matter, and I simply asked a question about the rationale of the urgency of the proposal brought forward by the Government. The Minister’s response was that I would know more if I visited my local jobcentre more frequently, and to accuse me of not visiting it for about five years. That is completely untrue; I am a regular visitor to the jobcentre, as I am to other institutions. However, the issue this raises is one of privilege. Does this mean that the Government are now monitoring the visits of Members of this House to Government Departments for use in political debate? If that is the case, let me just say that I have a brilliant working relationship with my local jobcentre, where the staff work incredibly hard, but most of our communication is via emails, telephones and so on. However, if our visits to Government offices are to be monitored, it will no longer be emails or telephones: I will insist on a meeting at the tax office, the jobcentre, the border office and every other Government agency in my constituency. This is a matter of parliamentary privilege, Mr Speaker, and I would like you to look into the matter.
Mr Speaker
I thank the right hon. Gentleman for notice of that point of order. The incident he recounts is indeed surprising and I note that the Leader of the House has heard it. We will leave it there for now, but I will follow up on it.
Committee on Standards
Debate between John McDonnell and Lindsay Hoyle(2 years, 6 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
On a point of order, Mr Speaker. I do not believe that any hon. Member is truly honourable if they serve on this new Committee. Therefore I want my constituents to know that no Member of Parliament serves on this corrupt Committee in my name.
Mr Speaker
As I have said, we are not going to go through all the Members in the debate.
Tax Avoidance and Evasion
Debate between John McDonnell and Lindsay Hoyle(4 years, 3 months ago)
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Paul Blomfield (Sheffield Central) (Lab)
Each year I organise an annual community consultation, and each year there has been growing anger among my constituents about the sense that they are paying their fair share from very ordinary incomes while the level of corporate tax avoidance has been growing out of control as successive Conservative Governments have failed to step up to the mark in tackling it. We are apparently losing over £1 billion of tax due on UK earnings from just five of the biggest US tech firms; that is money that could pay for more than 42,000 rooms in care homes for people who desperately need them. So does my right hon. Friend agree that there is enormous public support for tough action on corporate tax avoidance?
Mr Speaker
Order. I can put the hon. Gentleman’s name down if he wishes to make a speech, but we must have shorter interventions.
John McDonnell
May I thank my hon. Friend for that wonderful speech?
Whoever is in government needs to accept that this is an issue that we have to address, because there is now an increasing lack of confidence in the tax system, and I know from meeting companies, including some in the City, that fulfil their obligations that they feel anger towards those that do not; so this anger is felt within the wider community, but also within the business community. It destabilises the whole process of tax collection and undermines confidence in the system, and also undermines confidence in Government overall.
As I have said, some have suggested that the tax gap could be as high as £90 billion. Let us look at who is not paying: it is the rich corporations, and in particular the multinationals. Successive Conservative Governments have been, I have to say, weak on multi- nationals. According to analysis by Tax Watch UK the top five tech companies alone avoided around £5 billion in UK tax over the last five years. We need to recognise that this is money that could be used by whichever Government for useful purposes. That sum is enough to reverse the cuts to homelessness services—we should remember that 700 of our fellow citizens died on the streets last year. It is enough to provide support for families to prevent children from being taken into care, and Members will recall that when we had a debate not long ago we had the report that there are record numbers of children coming into care because of the cuts in early interventions to support families.
We have had discussions in the House about this, therefore. Recent years have seen secret sweetheart deals between HMRC and tech giants, and they have only been made public as a result of the tireless work of tax justice campaigners. The Government have trumpeted their digital services tax. It was trumpeted before the election, but that tax has been widely criticised. It is aimed only at digitalised business models, and many have said—and I agree—that it is hard to administer and becoming impractical. It creates a pitiful 2% tax on the revenues of a very small group of businesses and is predicted to raise £5 million only this coming year —and that is if it is brought into force on 1 April. Now there is talk of the Government dropping even that hollow half-measure. So let us be clear: if the Government drop or delay the digital services tax, as is rumoured, it will effectively be another tax giveaway to powerful multinationals.
Let us look at non-doms again. Non-dom status is another tax giveaway. My right hon. Friend the Member for Barking (Dame Margaret Hodge) has been raising this issue consistently for quite a while. This is just another area where the Tories have said a great deal but have not had an effective clampdown. It is a colonial hangover from 1799 that allowed colonists to shelter their property from tax—a carve-out from the general rule that UK tax residents pay tax on income wherever it is earned. It is a carve-out that applies only to some who might have their domicile outside the UK.
George Osborne, one of the many Chancellors I have dealt with over the years, tinkered with the process and introduced an annual charge of £30,000 to be paid by some non-doms and £60,000 by others. The Government now will claim they are abolishing non-dom status, but actually it is being kept intact for a significant number of years despite the evidence that those who use this status are the wealthiest individuals, able to pay, able to contribute to the funding of our public services, and able to contribute to our society, which they enjoy living in for long periods. Previous estimates have said that fully abolishing now the status of non-doms could raise £1 billion for our public services—think what that could do now to assist families whose homes are flooded.
There are many other ingredients; non-dom status is just part of an array of ingredients that enable abuse of our tax system. Secrecy is at its core; it is financial secrecy, and especially the exploitation of overseas territories and Crown dependencies to avoid tax.
Last week, to this Government’s shame, the Tax Justice Network judged that the UK had increased its secrecy score by more than any other country since it last measured financial secrecy. It said that the UK had been backsliding in recent years by building its “spider web” of satellite tax havens. Some of us were in this House when the Panama papers were exposed. They revealed that the most popular haven in the world is the Virgin Islands, which is a British overseas territory.
A lot of words have been said about enablers, but there has been a history of failure to clamp down on the enablers of avoidance and evasion, including the auditors and, yes, the lawyers. One recent paper said—my hon. Friend the Member for Wallasey (Ms Eagle) made this point—that
“the tax services industry, propagated by the Big Four—”
the big four accountants—
“is essentially the apex of this pyramid of factors that helps build, manage and maintain”
the tax havens, but the Government have said and done little to crack down effectively on the tax services industry.
There has also been a history of failure to recognise how the City of London is complicit in the financial misconduct affecting the global south when it comes to tax collection and the hiding of taxation. According to Oxfam, the global south is losing £170 billion in tax revenue due to the wealth of individuals and corporations hidden in tax havens associated with this country. Surely it is our responsibility to ensure that London is not used as a global laundromat for washing dirty money. It is the Government’s duty to protect our citizens by stopping that dirty money undermining the rule of law internationally and undermining international stability. What goes around comes around, and allowing the City of London to be used in that way will have its consequences in the long term for all of us. To collect taxes we need tax collectors, yet Her Majesty’s Revenue and Customs has seen its staff numbers plummet from 105,000 in 2006 to 65,000 in 2019.
As we have raised before, there is a litany of legal loop- holes that the Tories have not acted on or have actively created. The general anti-abuse rule that many of us argued for has proved to be toothless—far weaker than anti-avoidance rules in other legislations. The use of legal professional privilege in tax avoidance cases is little short of a disgrace. George Osborne promised the “march of the makers”, but Nicholas Shaxson has said that the Tories have only created the “march of the takers”. I concur. A number of us have been working with a range of tax experts, accountants, the Public and Commercial Services Union, the HMRC staff union, tax justice campaigns and corporate reform groups. Labour has developed a plan to tackle each of those issues, and there is a range of expertise in this House on all sides arguing for more action.
On secrecy, we believe, as others have said, that we need a stronger public register of trusts and beneficial ownership of companies. We need to put an end to financial secrecy, because the current register of trusts, so often a vehicle of tax avoidance, is not truly public and the penalties for non-compliance are pathetic. The current register of who controls companies is not being verified properly and has a high threshold for disclosure. We have a plan for working with overseas territories and Crown dependencies to accelerate their move towards tax transparency. It is just not good enough that the deadline for establishing public registers of company controls has slipped to 2023 at the earliest.
We believe there should be a clampdown on enablers through the introduction of stronger laws on facilitating tax evasion and, yes, harsher penalties for those who promote schemes. The current law has a wide defence for those accused of facilitation, and penalties for promoters of tax avoidance and evasion are just too weak. We urge the Government to introduce an overseas loan transparency register. That would tackle injustices of the kind that we have seen in, for example, Mozambique. We met a group of women from Mozambique, who told us what had happened in their country. Some of their politicians had undertaken secret lending using UK law and had ripped billions from the budget of Mozambique. Then, when the effects of climate change were felt through flooding following a major cyclone, Mozambique did not have the resources it needed to protect its own people.
We urge the Government to introduce a plan to increase targeted audits undertaken by HMRC to raise the nearly £3 billion owed by self-assessment taxpayers. The majority of the self-assessment tax gap is owed by a small number of self-assessment taxpayers, who could be effectively targeted by such audits.
Our concern is that far from moving forward on tackling tax avoidance in the coming Budget, the Government are opening up the opportunity for more abuse, specifically with their proposals for freeports. The evidence suggests that freeports simply relocate jobs and investment, rather than creating new jobs and investment. Far too often, they become hubs for the abuse of workers’ rights and tax evasion.
Let me be straight with the Conservative party. There is a concern about why the Tories will not tackle tax evasion and avoidance effectively. It is argued by some that they are in the pockets of the City, and in the pockets of the avoiders, the evaders and the enablers. It is hardly surprising that some will be able to level that charge. For example, they could come to that conclusion when only this month we discovered that Lycamobile, which donated £2.1 million to the Conservative party, is embroiled in three tax disputes with HMRC over £60 million in unpaid tax. Indeed, the French auditors were blocked from accessing that company’s records in this country. The problem, however, may also lie closer to home: not just with donors, but with the Chancellor himself.
I put it on the record that there are questions I believe the Chancellor himself, given his past associations, has to answer about his own attitude to tax avoidance. I have written to the Chancellor with a series of questions on this matter. In recent weeks, it has become clear that the Chancellor of the Exchequer, the right hon. Member for Richmond (Yorks) (Rishi Sunak), has had close associations with tax avoiders and tax havens. If people are expected to have any confidence in this Government’s commitment to tackling tax avoidance, it is critical that the Chancellor is fully open and transparent about his own past activities. A former close business associate in two companies in which the Chancellor held senior positions was ordered to repay £8 million after engaging in an unlawful tax avoidance scheme. Two of the firms in which the Chancellor held senior positions have made use of the notorious tax haven of the Cayman Islands.
On our side, we will continue to press the case for a fair taxation system. To do that we need first of all to close the loopholes that allow tax avoidance and evasion to flourish. However, we also need to deal with the overall regulatory architecture of finance, a challenge raised by a report published this morning by the True & Fair Campaign. Let me quote from that report:
“the last four years have seen a multiple pile-up of mis-selling scandals and incidents of regulatory failure. It has witnessed the repeated and wanton abdication of responsibility by leading market participants...Worst of all, it has demonstrated a breathtaking betrayal of the trust...rightly owed by so-called financial services professionals to their investors and employees.”
That report is called “Asleep at the Wheel”. It singles out for criticism the Financial Conduct Authority, and in particular Andrew Bailey, appointed by the Government to be the next Bank of England Governor. On several occasions I urged the previous Chancellor, in this House and by correspondence, to delay the appointment and installation in office of Mr Bailey until there has been an independent review of his role at the FCA. This report adds urgency to that recommendation. I urge the new Chancellor to act on it now.
In conclusion, the forthcoming Budget will be a test of whether the Tory party has, as it claims, turned a page. From the evidence so far it looks like a bit more Johnsonian bluster. There is nothing on the scale needed to address in any serious way the damage Conservative Governments have inflicted on our community over the past decade, and certainly nothing on the scale needed to tackle the climate crisis. Any realistic policy to end and reverse austerity and invest for the future needs, at its base, a fair taxation system. We will wait, therefore, to see whether in this Budget, the Government will at long last effectively confront the scandal of tax evasion and avoidance. All I can say is that judging on past form, I am not holding my breath, and I do not think many others are either.
Economy and Jobs
Debate between John McDonnell and Lindsay Hoyle(6 years, 11 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I am finding it very hard to hear what the shadow Chancellor has to say. If I cannot hear, you cannot hear. What is the point of posing a question if you cannot wait for the answer?
John McDonnell
I am sure that the Chancellor will fill us in on the details when he makes his speech. The reality is that when it comes to cutting taxes, what we have seen over the past seven years is the rich being treated to tax cuts while the poorest in society have seen their services demolished in front of our eyes. The increasing levels of poverty in our society are a direct result of the redistribution of wealth from the poorest to the richest under this Government.
Nicky Morgan (Loughborough) (Con)
It has taken the right hon. Gentleman 33 minutes to get to this country leaving the European Union, which is the defining issue affecting our economy. He talks about divisions. He might want to think about the 100 Members of his own party who have been through the shadow Cabinet during the course of the previous Parliament. He might also want to ask questions about the lamentable performance of his leader, and his Back Benchers might want to ask him questions about his lamentable performance in the EU referendum last year. If they felt that strongly about Brexit, they would have defended our membership of the EU.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I hope to call the right hon. Lady very early on and save her speech until then rather than now. That will help everyone.
John McDonnell
It was a great speech, though. I am quite used to throwing red books about in this place. I will send the right hon. Lady a copy of the manifesto my party is united behind.
The Economy and Work
Debate between John McDonnell and Lindsay Hoyle(8 years ago)
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Geraint Davies (Swansea West) (Lab/Co-op)
Does my hon. Friend accept that in the 10 years of the Labour Government to 2008—pre-crash—the economy grew by 40% and that, after the banking crash, we left debt at 55% of the economy in 2010, a figure that is now 83%? Does that not show a failure to grow the economy effectively or to manage productivity?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. May I just say to the hon. Gentleman that he has already tested the patience of the House and should not continue to do so? I care about colleagues on both sides of this House and will make sure that everybody gets in, so—unfortunately—interventions must be very short. The list of speakers is very long, and I do not want any Members to miss out.
John McDonnell
I do not want to be discourteous to any Members, but as you suggest, Mr Deputy Speaker, I will take only a limited number of interventions.
On the crash, let us be clear—[Interruption.] Well, let us talk about the crash. The policy of deregulating the banking system, turning the City of London into a casino, was the policy pursued by the Conservative Government for the previous 30 years.
Let us move on to the criterion of growth. Growth has been revised downwards for every year for the rest of this decade, and when the OBR revised its forecasts downwards, the Chancellor’s entire Budget plan was shot to pieces. He has been left with a £4.8 billion black hole of committed spending, but there is no committed funding. It is nonsensical to claim, as the Government’s Queen’s Speech did, that the public finances are being placed on a “secure footing” when there are gaping holes in the Budget and the Institute for Fiscal Studies thinks there is only a 50:50 chance of meeting the Government’s own fiscal surplus target. This is betting the nation’s finances on the equivalent of tossing a coin. There is nothing responsible and there is nothing “secure” in setting unrealistic and politically motivated targets for public spending cuts.
It is useless to preach to us about the need for a “stronger economy” when, by his actions in office for six years, the Chancellor has methodically undermined the economy. This was his choice. Austerity was a political choice, not an economic necessity. We all now live and are still living with its consequences. Because it was the wrong choice to make, the Chancellor has failed, and it is the British people who are bearing the cost.
The Chancellor has piled failure upon failure, but at the centre of it all is the failure to sustain productivity. Productivity is the key to growth in any modern economy, and the surest way to achieve increased productivity is through increased investment. Increased investment means installing new equipment and replacing old infrastructure, yet business investment remains weak. When business investment is weak, the Government should step up to make sure vital, world-class infrastructure is provided—from high-speed rail to high-speed broadband. There is now consensus from the International Monetary Fund to the OECD, and from the CBI to the TUC, in urging Governments—not just in this country but across the world—about the need to invest in the future, but this Government are clinging to their fiscal surplus target, which is set actually to cut real-terms Government investment over the course of this Parliament. Mr Deputy Speaker, you could not imagine a more perverse and inadequate economic policy.
Behind the failure to invest lies the failure of our economic institutions. Too many of them have been captured by special interests or place short-term gain ahead of long-term growth. We have major corporations, which are sitting on a cash pile of up to £700 billion, paying out high salaries to senior executives while failing to invest. It is no wonder that in the past month we have seen a series of shareholders revolts against the remuneration packages of some chief executives.
We have a Business Department that does not actually believe in supporting business and refuses even to mention the words “industrial strategy”. In Her Majesty’s Revenue and Customs, we have a department for tax collection that does not believe in collecting taxes—not, at least, from major corporations. That was demonstrated by the fact that when it struck a deal with Google that reflected an effective tax rate in single digits, the Chancellor calls it a “major success”. I have written to the Chancellor to make sure he urgently contacts the French authorities, so that any information they find during their investigation into Google’s Paris headquarters is shared with us to give us a better understanding of Google’s operations in the UK.
John McDonnell
I would celebrate it if it was a real living wage and if many of those people were not also suffering from cuts to universal credit.
The reality is that after six years of desperate efforts to impose cuts on our economy, against the best available advice from the economics profession itself, the Chancellor is staring an entirely predictable failure in the face. He started out with such high-flown promises. There was going to be a “march of the makers”, yet today, manufacturing is still smaller than in 2008. There was going to be a rebalancing of the economy, yet today for every three jobs created in London just one is created in the rest of the country. There was going to be a modernised tax service, but, as the National Audit Office pointed out in a damning report earlier this week, the quality of service at Her Majesty’s Revenue and Customs has collapsed in the past year as a result of staffing cuts. He promised increased investment, but he cut Government investment spending and now plans to cut it further. In 2010 he forecast the fastest recovery in living memory, but he has delivered the slowest recovery in modern British history.
Let us talk about job creation. The Chancellor and his Government have, perhaps understandably, clung to the job creation figures. Every month they are greeted with rare enthusiasm by Ministers. The reality is that two thirds of those in poverty—nearly 9 million people—are in work. [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The Treasury Bench does not need to be echoing all the way along. Can we give it a break? The Chancellor will be speaking soon and you will expect me to treat people in the same way. I expect the shadow Chancellor to be heard, not shouted down. [Interruption.] Now, I have been very good so far, but I do not want to hear any more. I am sure that the Whips Office could do with someone to go and make a cup of tea. If they do not want one, I might later.
John McDonnell
Mr Deputy Speaker, you are a class act. The shout was, “Do we welcome the jobs?” Of course we do, but let us be clear: too many of the jobs created since 2010 have been poorly paid and insecure. Some 800,000 people are now on zero-hours contracts. Insecurity at work has been made worse by the undermining of employment rights by the Government. There is no need for that.
Budget Resolutions and Economic Situation
Debate between John McDonnell and Lindsay Hoyle(8 years, 2 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Members may think that this noise is not loud, but it is very loud when you are in the Chair trying to listen to the shadow Chancellor. The problem is that it does not do this Chamber any good in the eyes of the public when they cannot hear either.
John McDonnell
Let me assure Members that I will give way, but let me proceed a bit further.
As I have said, perhaps the fall in productivity is unsurprising, because productivity is linked to business investment, which should be driving the recovery, but which plunged in the last quarter.
Transport for London Bill [Lords]
Debate between John McDonnell and Lindsay Hoyle(9 years, 2 months ago)
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John McDonnell
On a point of order, Mr Deputy Speaker. The hon. Gentleman said that the amendments were tabled late—I think that is the allegation—and that the sponsors of the Bill could not respond. The amendments were placed before the Clerks in time—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. One second. Do not worry; relax. Let me have a little look at this. I assure the House that the amendments were not tabled late by the hon. Gentleman. There was a mistake in the Table Office, but that has absolutely nothing to do with what is being said. We do not need any more points of order on that as we have clarified the matter well. I am sure, Mr Blackman, that we will proceed in a courteous way.
Bob Blackman
I will not take any more interventions, as we have gone on long enough—[Interruption.]
Mr Deputy Speaker
Order. If the hon. Member for Hayes and Harlington (John McDonnell) wishes to intervene, quite rightly it is up to the hon. Member for Harrow East (Bob Blackman) whether he gives way. He has made it clear that he does not want to give way again.
Mr Deputy Speaker
I have no idea. It is not for the Chair to judge, thank goodness, and I do not need a crystal ball to work it out. The good thing is that the hon. Gentleman has at least made it clear that he does not want to take any more interventions and he wants to get his speech under way.
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following:
Amendment 4, in clause 1, page 5, at end insert
“save as provided for in subsection (3).”
Amendment 5, page 2, line 6, at end insert
“save as provided for in subsection (3).”
Amendment 6, page 2, line 6, at end insert—
“(3) Sections 4, 5 and 6 of this Act shall not come into force until the Secretary of State has arranged for, and published the report of, a review of the—
(a) potential risks to the assets of Transport for London arising from the exercise of the relevant powers to be conferred thereby, and
(b) likely effectiveness of measures put in place by Transport for London in mitigation.”
Amendment 7, in clause 3, page 2, line 17, after “TfL”, insert
“following consultation with the Greater London Assembly, and the publication of a report of such, and”.
Amendment 8, page 2, line 19, leave out “two” and insert “three”.
Amendment 9, page 2, line 25, leave out “two” and insert “three”.
Amendment 15, page 2, leave out clause 4.
Amendment 10, in clause 4, page 2, line 37, at end insert—
“(1A) The consent of the Mayor under subsection (1) may only be granted after the Mayor has consulted, and published a report of such consultation:
(a) the Greater London Assembly
(b) the London boroughs
(c) the City of London
(d) passenger representative bodies, and
(e) relevant trades unions.”
Amendment 11, page 2, line 38, leave out “all or any” and insert “no more than 25%”.
Amendment 12, page 2, line 41, leave out
“including the creation of priority as between changes.”
Amendment 13, page 3, line 9, leave out subsection (5).
Amendment 30, page 3, line 13, leave out
“Except for the property identified in the Schedule to this Act”.
Amendment 14, page 3, line 15, at end insert—
“(6A) TfL shall not charge any property for any of the purposes mentioned in subsection (2) unless—
(a) it has consulted the Greater London Assembly and published the results of that consultation, or
(b) the property falls within a category identified in the Schedule to this Act.”
Amendment 31, page 3, line 15, at end insert—
“(6A) Any consent of the Secretary of State given under subsection (6A) above shall be given in an order made by the Secretary of State.
(6B) A statutory instrument containing (whether alone or with other provisions) an order under subsection (6B) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
(6C) An order under subsection (6A) above shall in each case include—
(a) the land registry title number or numbers of any property or properties to be charged, and
(b) a specification of the proprietor or proprietors of the charge.
(6D) The proprietor or proprietors of the charge under subsection (6D)(b) may not be a joint venture partner of Transport for London or one of its subsidiaries.”
Amendment 33, in clause 7, page 5, line 25, at end insert—
“(5) TfL shall conduct a review, and publish a report, after 12 months of the operation of the s49 Transport for London Act 2008 powers, as amended by this section, of the use and impact of those powers in relation to investment by subsidiaries of TfL in derivatives in order to limit exposure to changes in interest rates, exchange rates, commodity prices or other matters specified in s49(3) of the 2008 Act.
(6) Each subsidiary of TfL shall publish a report each year of the use made of the powers under s49 of the Transport for London Act 2008, as amended by this section, in relation to investments made in derivatives, or equivalent instruments, in order to limit exposure to changes in interest rates, exchange rates, commodity prices or other matters specified in s49(3) of the 2008 Act.”
John McDonnell
May I say at this stage that I would like to press amendments 1 and 33 to a Division? Amendment 1 straightforwardly takes out paragraph (2) from the preamble of the Bill. Paragraph (2) refers to the powers set out in clause 4. I will then turn to amendments 4, 5, 6, 7 and so on.
Amendment 1 is consequential to amendment 15. What they do is delete the powers of Transport for London, set out in the Bill, to borrow by giving securities in the way prescribed in clause 4. The amendments strike at one of the main objectives of the Bill. Even if we took out clause 4, and even clause 5, we would still retain clause 7, which I support. Clause 7 concerns the mitigation of risk through hedging powers to be provided to Transport for London.
I want to delete clause 4, to which amendments 1 and 15 relate, because I do not consider that it should be part of a private Bill. The purpose of the clause and the scale of the potential financial responsibility levied on London council tax payers and taxpayers militate against this being a private Bill; it should be a public Bill. Clause 4 should not stand in the Bill.
Christmas Adjournment
Debate between John McDonnell and Lindsay Hoyle(9 years, 5 months ago)
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John McDonnell
It is perfectly open to the President to do this now. There is a window of opportunity that may close in January as a result of the changes in Congress, so now is the time for him to act. A number of MPs from all political parties have signed a plea to urge the Prime Minister to pick up the phone to Washington to ensure that Shaker is returned home to his family by Christmas.
I want to raise two other things. This Christmas will the last Christmas when my constituents and many others in the London borough of Hillingdon will have the opportunity to use the services of Randalls store in Uxbridge, because it is closing. It has served our community over generations and decades. I thank the right hon. Member for Uxbridge and South Ruislip (Sir John Randall), his predecessors, his family and the staff for the service they have provided. I wish him and all the staff well in the future. The store will be greatly missed as a local community facility.
This morning I visited pupils at Harlington community school, a local secondary school where a group of sixth formers had, of their own volition, collected parcel after parcel of food to be provided to Hillingdon food bank. I wish them a very happy Christmas. I take pride in what they have done and their generosity as young people working hard on behalf of the community. I wish you, Mr Deputy Speaker, and all Members and staff a happy Christmas.
Mr Deputy Speaker (Mr Lindsay Hoyle)
There can be no more appropriate moment to call Sir John Randall.
Jobseeker’s Allowance (Sanctions)
Debate between John McDonnell and Lindsay Hoyle(9 years, 5 months ago)
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John McDonnell
An answer that was given a year and a half ago was misleading. If that is the case, would it not have been appropriate for the Minister who gave that misleading answer to come to the House at the first opportunity, as is the convention, to correct the information? As far as I am aware, there has been no correction whatever. I ask you to take this matter up, Mr Deputy Speaker, as a point of procedure with the relevant Department.
Mr Deputy Speaker
What we need to do is to get to the end of the debate. The point is well made and it has been taken on board.
Esther McVey
I do not have my glasses on at the moment. It is John McDonnell on the Opposition Benches, is it not? [Interruption.] It is. I thought that perhaps the hon. Gentleman was standing up to pass comment on something else, now that it is Christmas—the time when people should be able to stand up and apologise—or, as he said he would in front of the House, to invite me for a cup of tea—
Mr Deputy Speaker
Order. [Interruption.] Order, everybody! Let us have a little bit of Christmas spirit. The Minister must give way when there is a point of order.
John McDonnell
On a point of order, Mr Deputy Speaker. Allegations have been made here that have been responded to previously. If the right hon. Lady is raising matters in relation to me, I am quite happy to respond to them if she gives way.
Mr Deputy Speaker
We are not going to get into that. It is Christmas, and this is the final debate before the recess, so we ought to take on board where we are and be careful about the comments that are made.
Esther McVey
Thank you, Mr Deputy Speaker. As the hon. Gentleman said that he would make a phone call to speak to me about this matter, I await the phone call—
Finance Bill
Debate between John McDonnell and Lindsay Hoyle(9 years, 10 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
The Minister will respond just before 2.50 and we have four more speakers.
John McDonnell
I will be fairly brief.
Under the last Government, I moved amendments like the new clause on virtually every Finance Bill. It has always made me anxious when Governments resist the requirement to provide information. That is all that is sought in the new clause. It simply looks to ensure that the House is properly informed about the impact of a differential tax rate. For the life of me, I could not understand why such amendments were resisted by the last Government, and I cannot understand why the new clause is being resisted now.
Pensions Bill
Debate between John McDonnell and Lindsay Hoyle(10 years, 6 months ago)
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John McDonnell
On a point of order, Mr Deputy Speaker. There comes a time when accuracy is important in this House. John MacGregor, as Secretary of State, gave assurances that when British Rail was privatised pensions would be protected. He said not that they would have the same protections as private companies but that pensions would be protected. There is a point of accuracy, so that Ministers do not attempt to mislead this House.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I am sure that nobody would deliberately mislead this House—let us clear that one up. That is not a point of order but it has certainly been corrected for the record, which will be read tomorrow.
Growth and Infrastructure Bill
Debate between John McDonnell and Lindsay Hoyle
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I cannot hear the Minister speak. If he does not wish to give way, that is his choice, but I must be able to hear what he has to say.
John McDonnell
On a point of order, Mr Deputy Speaker. Would it not be right to get it on the record that it is etiquette for one Front Bencher to give way to another Front Bencher in a debate of this sort?
Mr Deputy Speaker
It might be normal practice to give way, but it is still the Minister’s choice whether he wishes to or not. Obviously on this occasion he does not wish to give way.
Jobseekers (Back to Work Schemes) Bill
Debate between John McDonnell and Lindsay Hoyle(11 years, 2 months ago)
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John McDonnell
It is that, but there is also a wider agenda of making people feel guilty just because they are out of work and guilty just because—temporarily, in most instances—they have to depend on some benefits. This is about scapegoating and victimising the poor and people who cannot get a job. It is about harassment and exploitation. At the heart of that is the judgment that Parliament was not properly informed of what those schemes and regulations meant. That is what the judgment said.
I make it clear that I shall vote against the Bill because it is immoral and wrong. Before we vote to render those schemes lawful retrospectively, it is important that Members are aware of what we will be supporting. Boycott Workfare is an organisation that set up— [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. There seems to be a phone ringing somewhere. Wherever it is, we can certainly hear it.
John McDonnell
Before we vote tonight, it is important we know that we will be voting to support the workfare schemes being introduced by the Government. The Bill will enable the sanctions to be continued and retrospectively made legal, because people refused to go on those schemes—I think justifiably so with regard to many of them. Let us take some examples from the Boycott Workfare website. Tesco is a classic, and one example refers to
“a fifty-six year old man who worked at Tesco for 40 hrs a week for 6 weeks for no pay.”
He was
“given the worst job, constantly filling freezers in the hope he would be taken on. After the 6 weeks were up the manager asked him if he would like to stay on for some extra weeks,”
and the man said,
“‘with pay?’”
The manager said no,
“why would he pay him when he can pick the phone up and get more unemployed people who have to work for nothing”?
That was at Tesco, and the list goes on. Poundland is a classic example of an organisation exploiting unemployed people, time and time again recruiting shelf stackers while laying off other workers. Primark is another example. One young woman who went to Primark said:
“The Jobcentre paid travel money but no lunch. I worked three days a week, 10 am to 4.30 pm or 5 pm with one half-hour break.”
Primark
“don’t pay any money. It was nearly six months, from January to June. When I finished the placement I took my CV and I asked the managers if they had any vacancies. They said, ‘Not yet—we’ll call you when we do.’ I haven’t had a call.”
Welfare Reform Bill
Debate between John McDonnell and Lindsay Hoyle(12 years, 11 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
I have been given no indication by the Treasury Bench or any Department that there is to be a statement this evening. I am sure that the Treasury Bench will have heard the right hon. Gentleman’s concerns.
John McDonnell
On a point of order, Mr Deputy Speaker. We have just finished the Report stage of the Welfare Reform Bill, but we have failed yet again to reach major parts of the Bill, particularly amendments on the cap on benefits, which I totally oppose and think are a disturbing element of the Bill. As the Leader of the House is here, may I say to him through you, Mr Deputy Speaker, that we are exhibiting to the general public that the House is not working if we are not reaching major parts of such an important Bill. I would hope that the Government would consider pausing, as they did with the NHS Bill, and thinking again in the light of today’s debate.
Superannuation Bill
Debate between John McDonnell and Lindsay Hoyle(13 years, 5 months ago)
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John McDonnell
The House needs to be aware of what this measure actually means, and I make it clear that I will press my amendment to a Division.
Mr Deputy Speaker
The hon. Gentleman will be able to move his amendment formally later.
John McDonnell
Thank you very much for that advice, Mr Deputy Speaker. I get confused when we are talking about sunset and sunrise clauses.
Let me explain what this measure means. Despite all we have heard today from the Government about their willingness to achieve a negotiated settlement on a new compensation scheme and their wish to ensure that all the trade unions are signed up to it and that it is acceptable both to members of those unions and to people not in those unions, the fact is that they will retain the power, over a three-year period, to impose the caps set out in the Bill.
We should remind ourselves of what those caps are: for a compulsory redundancy, an amount equal to a person’s earnings for 12 months, and that amount for 15 months for a voluntary severance. We heard in evidence in Committee—this has been repeated in the Chamber time and again—that that will mean a cut of up to two thirds in the redundancy payments of many civil servants; 60% to 70% was the figure cited by the Joint Committee on Human Rights. Any Government will have the power to impose those caps at a later date, and to impose that level of penalty on civil servants who are made redundant.
If the Government are confident of being able to negotiate an agreed solution under the new scheme in this coming period, why do they need the right, over a three-year period, to impose these caps unilaterally? I still think that if they sought to do that, it would be subject to a legal challenge, but why would a Government seek to retain that power if they were entering into negotiations with good will, genuinely seeking an agreement, and taking every reasonable step to secure one?
My amendment simply seeks to reduce the period to 12 months, as an act of good will on behalf of this House in respect of its employees in the civil service. I believe the Government have set the period at three years because they want to maintain their original purpose for the Bill, as previously described: to use it as a blunt instrument to bludgeon the unions into submission so they agree to the Government’s proposals. That is unacceptable. I also think this will be another factor that leads to people rejecting the overall scheme in the ballots that are currently taking place, and instead moving on to take action to stop the scheme being imposed upon themselves and their fellow trade union members.
I urge the Government to think again, as 12 months should give them sufficient time to negotiate and introduce a new scheme, and to introduce any reforms or amendments that might be needed to hone it to make it more workable if there were any problems with its implementation. It is unacceptable for the Government to have the threat of this blunt instrument to hold over civil servants for three years. Introducing this measure would be another contributory factor to the deterioration in the relationship between the Government and their staff, who are meant to implement, with high morale, the policies they introduce.